FREE Account Opening + No Clearing Fees

Demat Account Fees & Charges

Published on Thursday, May 23, 2019 by Team | Modified on Tuesday, November 16, 2021

Demat Account Fees & Charges

Zerodha (Flat Rs 20 Per Trade)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

Demat is short of dematerialize whose literal meaning is to become free of physical substance. In the stock market, demat meaning replace physical share certificates with a paperless computerized record.

Demat account is an account with an authorized demat service provider. It holds shares and securities in digital form. The demat account is similar to the bank account but instead of keeping money, demat account holds company shares, mutual funds, bonds etc. in digital format.

During online trading and investing, all the securities bought by an individual in equity, bond, government securities, ETF (Exchange-Traded Funds), and mutual funds are held in the Demat account. The securities in electronic form are accessible online across the world and anytime. Investors who want to invest and trade in Indian Stock Market are mandatorily required to have a Demat account.

NSDL and CDSL are the companies authorized by Government of India to hold securities in electronic format. They are called Depository. They have members (depository participants or DP) who provide the demat account related services to the investors. DP's are intermediaries between the customer and the central depository. Usually, all stock brokers are DP of NSDL or CDSL or both. There are a total of 866 DPs (289 NSDL, 577 CDSL) offering demat account facility.

For providing demat account services, the DPs charge fees from customers. Each broker charges these services at different rates.

Demat Account Benefits

  1. Holds shares in electronic form eliminating the threat of losses due to theft, damages etc.
  2. Provides legal ownership of shares without any paperwork.
  3. Makes the trading process easy.
  4. Provides an opportunity to trade across different asset classes.
  5. Safeguards the securities from theft, mutilation and misplacement.
  6. Eliminates stamp paperwork and makes the transaction process easy and cost-effective.
  7. Reduces paperwork for transfer of securities.
  8. No geographical barriers for trading.
  9. Reduces transaction cost.

Demat Account Types

In India, there are two types of demat account; Normal and BSDA Demat account. BSDA demat account was introduced to reduce the maintenance cost of demat account for small investors. Here are the high-level differences:

Normal Vs BSDA Demat Account


Normal Demat Account

BSDA Demat Account

Investors type

Designed for small and large traders who trade frequently in the stock market.

Designed for small investors whose investment is not higher than a couple of lakhs in a year.

Portfolio size

Investors can maintain a large portfolio size under normal demat account opening.

Investors can maintain only a small portfolio size with BSDA demat account.

No of demat account

Holders can have multiple normal demat accounts.

They can only have one BSDA demat account.

Maintenance charges

It has high annual maintenance charges.

  • No charges for portfolio size up to Rs 50 thousand.
  • Rs 100 for up to Rs 2 lacs portfolio size.


All the services are chargeable.

  • No demat account fees for basic services.
  • All the other services are chargeable.

Transaction Cost



Demat Account Charges Meaning

The demat account charges are collected by depository participants for offering various services. Here is the list of demat account transaction charges:

  1. Account Opening Charges
  2. Account Maintenance Charges
  3. Debit Transaction Charges
  4. Off-Market Debit Transaction Charges
  5. Pledge Creation Fees
  6. Pledge Invocation Fees
  7. Dematerialisation Charges
  8. Rematerialisation Charges
  9. Modification in Address, Email, Mobile and Bank Updation Fee
  10. Delivery Instruction Slip Charges
  11. Account Statement Charges

Here is the details of all the applicable demat account fees & charges:

1. Account Opening Charges

Brokers charges a nominal fee for opening a demat account with them. This is a non-refundable fee charged in advance at the time of account opening.

Most online stock brokers offer free account opening either to all customers or through special promotions.

If you open 3-in-1 account (savings account, demat account and trading account), the demat account opening changes are included in the 3-in-1 account opening charges.

Brokers like Zerodha charge Rs 100 demat account opening fee.

2. Account Maintenance Charges (AMC)

AMC is the yearly fee charged by the broker to maintain the demat account. AMC can be between Rs 300 to Rs 1000 per annum depending on the value of holdings and stockbroker.

There are 3 major fee structure followed by stock broker for AMC:

  1. Fixed Yearly AMC in which customer pay a fixed fee every year to the broker. Most brokers offer this model. Some brokers wave the 1st years AMC as a special offer.
  2. Zero AMC Demat Account (Lifetime free AMC) in which customer doesn't pay any AMC. Some brokers keep a small refundable deposit while others charge onetime non-refundable fee for this.

Check Zero AMC Demat Accounts for more detail.

3. Debit Transaction Charges

When you sell a share online, the shares are debited from your demat account and credited to the buyer's account. The debit transaction means the debit of securities from the demat account.

Customer pay a debit transaction fee for every withdrawal of shares from the demat account. Some broker charge the flat fee (i.e. 9.50 per transaction) while others charge based on the % of the transaction value.

4. Off-Market Debit Transactions Charges

An off-market transaction (sell) is basically selling of securities on an already specified price and conditions between the seller and buyer. In this mutual settlement between the parties, stock exchange and Clearing Corporation are not involved. Off-market trade can be placed for the following reasons:

  1. Transferring ownership of shares.
  2. Gifting shares to any family member.
  3. Transferring shares between two demat accounts.
  4. Shifting of securities between a sub-broker and a client.
  5. Transactions in unlisted securities.

Customer pays a fee for every off-market debit transaction.

5. Pledge Creation Fees

In the practice of pledging the shares, investors put the equity shares available in his demat account as collateral against loans. After the creation of pledge, pledgee (whom a pledge is given) has the rights to hold the shares till the pledgor pays the dues. In the default case, this pledge is used to recover the dues.

Every time a customer put shares in his demat account on pledge, the broker charge pledge creation fee.

6. Pledge Invocation Fees

In default case of pledge where pledgor is unable to repay the loan to the pledgee, as per the underlying agreement, a pledgee will submit an instruction slip for initiating invocation of the pledge to DP. In the case of invocation of a pledge, the shares are transferred from the pledgor to the pledgee.

7. Dematerialisation Charges

Dematerialisation is processes through which an investor can convert securities paper certificates in electronic form to hold them in demat account. The broker charges a fee to convert the shares. Some broker change flat per certificate fee while other charge based on the value of the securities.

8. Rematerialisation Charges

Rematerialisation is the reverse process of dematerialisation. All the securities in the dematerialisation form can also be converted back to physical certificates with rematerialisation process.

The client has to request for rematerialisation process to the depository participants with whom he has a demat account. Broker charges a fee for Rematerialisation and courier cost to the customer.

9. Modification in Address, Email, Mobile and Bank Updation Fees

Any modification in address, email, mobile and bank detail of demat account should be informed to DP along with the required documents. These changes are informed by the depository participant to different companies. This service is charged for per modification request with DP.

10. Delivery Instruction Slip Charges

A Delivery Instruction Slip (DIS) is a form authorizing the DP to debit the shares from BO's account and transfer the shares to another account mentioned in the stated slip. In case you misplace or lost the delivery instruction slip, you have to inform the depository participants immediately in writing form for cancellation and re-issuance.

11. Consolidated Account Statement

Consolidated Account Statement (CAS) provides great convenience to investors as it shows a consolidated view of the demat account containing all the information regarding his entire holdings. This gives an insight on how to track the performance of the different securities and the financial condition of the company.

Demat Charges Example

Zerodha is the leading stock broker in India offering discount stock brokerage services. Zerodha also provide demat account through its membership with CDSL. Below are the demat charges of Zerodha:

Zerodha Demat Charges

Zerodha trading and demat account opening charges are Rs 200. Zerodha charges Rs 300 per year demat account AMC. Zerodha demat debit transaction charge of Rs 13.50 per debit transaction.

ID Transaction Charges
1 Demat Account Opening Charges Rs 0
2 Stamp Charges payable upfront (at actuals) Rs 50
3 Annual Maintenance Charges (AMC) Rs 300 per year
4 Transaction Charges (Buy) Rs 0
5 Transaction Charges (Sell) Rs 13.50 for every debit
6 Demat Rs 150 per certificate
7 Remat Rs 150 per certificate + CDSL Charges
8 Courier charges Rs 100 per request
9 Pledge Creation Rs 30 per request
10 Pledge Invocation Rs 20 per ISIN
11 Margin Pledge/Unpledge Rs 9 + Rs 5 per request CDSL fee
12 Margin Repledge Rs 2 CDSL Fee
13 Periodic Statement (Email) Free
14 Non-Periodic Statement (Email) Rs 10 per request
15 Additional Delivery Instructions Book Rs 100 (10 leaves)
16 Cheque Bounce Rs 350 per cheque
17 Failed Transactions Rs 50 per ISIN
18 Modification in Customer Data Rs 25 per request
19 KRA Upload/Download Rs 50

Demat Account Fees Comparison

Compare demat account charges to find out which broker is offering demat account lowest transaction charges:


Demat charges are among the top expenses for stock market investors. Most customers focus on trading brokerage & taxes but ignore demat charges while choosing the stock broker. This results in unexpected surprises. It's important for stock trader and investor to understand the demat charges. Especially the investors should be aware of Demat AMC, Debit transaction charges and pledge charges.

Zerodha (India's Best & No. 1 Broker)

  Special Offer - Free Equity Delivery and Mutual Funds

  • Brokerage-free equity delivery trades.
  • Brokerage-free Direct Mutual Fund.
  • Pay ₹20 per trade for Intraday & F&O.
  • The best trading platform in India.

Open Instant Demat Account Read Reviews

Frequently Asked Questions

  1. 1. Can I open a demat account without Aadhar Card?

    As such, Aadhar is not required to open a demat and trading account. You could open it with just the PAN Card which is required.

    But as per the rule, PAN Number should be linked with Aadhar. If not linked, soon the PAN card will get deactivated.

    So technically Aadhar is required.


Rate this article
Rating:Rated 3.7 stars
Vote Here ...


Add a public comment...